Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with free cash flow margin rising as operating cash flow increased while capital expenditure held steady. Compared to the same quarter last year, free cash flow was lower despite similar revenue, driven by a decline in operating cash flow.
- Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter, lifting free cash flow and free cash flow margin, while capital expenditure remained similar. Compared to the year-ago quarter, operating cash flow was lower, resulting in a weaker free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$634.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$929.0M
Cash generated by operations before capital spending.
CapEx
$295.0M
Capital spending and related asset purchases.
FCF margin
9.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-12-31 | $7.4B | $1.2B | $353.0M | $837.0M | 11.4% |
| 2025-03-31 | $6.4B | $709.0M | $300.0M | $409.0M | 6.4% |
| 2025-06-30 | $6.9B | $510.0M | $301.0M | $209.0M | 3.0% |
| 2025-09-30 | $7.0B | $929.0M | $295.0M | $634.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, leading to a higher free cash flow margin. This improvement occurred even as capital expenditure remained broadly unchanged.
The stronger operating cash flow was the main factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter, lifting free cash flow and free cash flow margin, while capital expenditure remained similar. Compared to the year-ago quarter, operating cash flow was lower, resulting in a weaker free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by higher operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue was similar.
Monitor whether operating cash flow can sustain its improvement from the prior quarter level, as it is the primary driver of free cash flow changes.